FG to generate over $4bn from sale of 7 NIPPs

…steps down Alaoji, Omoku, Gbarain due to litigation

Stories by Etuka Sunday

The Federal Government is expected to generate over 4 billion dollars from the sale of seven out of the ten NIPP power plants, owned by the Niger Delta Power Holding Company.

As a result, the Joint Transaction Board comprising the Boards of the National Council on Privatisation (NCP) and the Niger Delta Power Holding Company (NDPHC), have approved the preferred and reserved bidders for the power plants.

Vice President Arc Mohammed Namadi Sambo, who also chairs the Joint Transaction Board, commended the successful conduct of the financial bid opening, which held on the 7th of March, 2014 at the Transcorp Hilton Hotel, and adjudged by all stakeholders as transparent.

He however directed that the sale of the three other Power Plants, namely Alaoji Generation Company, Omoku Generation Company and Gbarain Generation Company affected by litigation instituted by Messrs Ethiope Energy Limited should be stepped down, until the matter is resolved.

The preferred bidders are required to within 15 Business days of official notification provide an Unconditional Bank Guarantee of 15 per cent of the price offered by them. The country is expected to rake in US$4,253,291,777 at the conclusion of the privatisation process of the seven NDPHC power plants.

The meeting which held at the State House Abuja on Friday, approved as follows: Benin Generation Company: Preferred Bidder; EMA $580,000.000.

Calabar Generation Company: Preferred Bidder, EMA Consortium $625,000,000. Egbena Generation Company: Preferred Bidder, Dozzy Integrated Power Limited $415,075,000. Geregu Generation Company: Preferred Bidder, Seoul Electric Power Limited $690,200,000. Ogorode Generation Company: Preferred Bidder, Daniel Power Consortium, $531,777,777. Olorunsogo Generation Company: Preferred Bidder, ENL Consortium Limited $751, 240,000. Omotosho Generation Company: Preferred Bidder, Omotosho Electric Power, $659,999,000.

The meeting also approved that notifications be issued to preferred bidders of each of the seven Generation Companies to summit the required 15% bank guarantees within the following 15 business days, while also approving the commencement of transaction closure planning meetings following the placement of the required bank guarantees.

A statement by SS Usara for the SSA media and publicity to the Vice President, Umar Sani said the meeting further approved that the legal actions to vacate the court injunctions in respect of the three other Generation Companies continue with vigour for expeditious dispensation.

The meeting had in attendance the Governor of Delta State, Dr. Emmanuel Uduaghan, the Deputy Governor of Ekiti State, Prof. Modupe Adelabu, and the Minister of Power, Prof. Chinedu Nebo. Others present were the Supervising Minister of National Planning Commission, Ambassador Bashir Yuguda, the Minister of State Power, Hon. Mohammed Wakil as well as the Chairman of the Technical Committee of the NCP, Mr. Atedo Peterside among other top government functionaries.